Researcher Predicts XRP Boom as Tether Bubble Bursts
The post Researcher Predicts XRP Boom as Tether Bubble Bursts appeared on BitcoinEthereumNews.com.
SMQKE argues that XRP could surpass Bitcoin and Ethereum after Tether’s lack of sufficient reserves gets exposed. Citing a Bank of France research paper, the analyst mentioned that XRP is technologically superior to Bitcoin and has no bubble. A crypto analyst identified as SMQKE has disclosed that XRP could seize an opportunity to soar once Bitcoin’s (BTC) and Ethereum’s (ETH) Tether outlive its relevance and burst. In a long post addressing his 14.7k followers, SMQKE highlighted how Tether issues more USDT without sufficient reserves, inflating the price of Bitcoin and Ethereum. According to him, the backing of the stablecoin issuer could certainly be exposed and result in a devastating collapse of Bitcoin, Ethereum, and other cryptos that rely on its liquidity. HOW XRP WILL RISE AS BITCOIN AND ETHEREUM’S TETHER BUBBLE BURSTS:The implications of Tether’s manipulation are critical. 💯By inflating Bitcoin’s price by issuing more USDT without sufficient reserves, Tether’s eventual exposure could trigger a significant market correction.… pic.twitter.com/SFmC7qm1mA— SMQKE (@SMQKEDQG) August 21, 2024 This speculation surfaced on the internet years ago, forcing Tether to clarify that sufficient reserves back it. However, Edul Patel, chief executive of crypto investment platform Mudrex, objected to this assurance, citing that its liquidity pools show an elevated supply of Tether. A so-called liquidity pool that allows traders to swap between the three biggest stablecoins still shows an elevated supply of Tether, with the token accounting for 65% of the total as of Friday. That’s an indication that investors remain cautious about holding Tether. SMQKE backed his statements with a research paper confirming that Tether appears to feed the Bitcoin bubble. The 2020 Bank of France research paper, “Stablecoins: A Brave New World?” focused on the relationship between increased Tether’s liquidity and the surge in Bitcoin price in late 2017 and early 2018. Ripple’s Technological…
Filed under: News - @ August 22, 2024 9:14 pm